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$ 2.5 BILLION Bonus at Lehman (OMG !!)
The Times Online ^ | Sept. 21, 2008 | John Waples and Danny Fortson

Posted on 09/21/2008 3:06:14 PM PDT by LiveFreeOrDie2001

Fury at $2.5bn Lehman bonus Nomura and Barclays table bids today for US giant’s London operation as bank’s administrator likens collapse to EnronJohn Waples and Danny Fortson STAFF at Lehman’s New York office who helped to cause the world’s biggest corporate bankruptcy are to share in a $2.5 billion bonanza. The bonus, which has been described by London staff as a “scandal” has been pledged by Barclays Capital, the British-based bank that last week acquired Lehman’s American operation and took on 10,000 staff. The $2.5 billion (£1.4 billion) pot, which has been ring-fenced as part of the acquisition, has caused huge resentment among the 5,000 staff in the firm’s European and Middle Eastern operations who are not guaranteed to be paid after this month. There are, however, hopes that half the jobs in Lehman’s Canary Wharf office could be saved today by either Barclays or Nomura. Bids are being submitted for its UK equities and investment-banking business. A Chapter 11 bankruptcy document filed by Lehman Brothers Holdings Inc says that Barclays has identified eight individuals out of the New York staff of 10,000 who are vital to make the deal succeed and a further 200 who are identified as “key”. It is thought that these eight directors will be locked into two-year contracts worth between $10m and $25m a year. Related Links Paulson hailed as hero for stemming market slide A sickening slump gives way to euphoria The $2.5 billion had been accrued as part of the contribution to Lehman’s group profits for the first nine months of the year. Barclays said there is no obligation to pay it out but analysts say the competitive pressure to keep key staff means he will have to. p>

(Excerpt) Read more at business.timesonline.co.uk ...


TOPICS: Breaking News; Business/Economy; Government; News/Current Events; United Kingdom
KEYWORDS: banks; barclays; financialcrisis; lehmanbrothers; wallstreet
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To: Eva
Yes, obviously it is unfair that other big people make more money and get larger bonuses then little people. I think everyone should be paid the same....What do you say!

sarcasm.....

21 posted on 09/21/2008 3:18:03 PM PDT by Cold Heat (Well....................................That's .....that.........)
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To: Chet 99

But Paulson hasn’t detailed whether it would be available to all 7,200 commercial banks and 1,200 thrifts or to just a portion of them deemed to be “at risk,”—or where that “at risk” bar would be set. Also, would the program welcome assets from investment banks (perhaps even the estate of Lehman Brothers (nyse: LEH - news - people )? Lehman Brothers), hedge funds and other funds that have exposures?

http://www.forbes.com/2008/09/20/banking-bailout-paulson-biz-wall-cx_lm_0920questions2.html


22 posted on 09/21/2008 3:18:22 PM PDT by Mojave
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To: Mojave

There’s no taxpayer money in the Barclay’s purchase of some Lehman operations.


23 posted on 09/21/2008 3:19:48 PM PDT by farlander (Try not to wear milk bone underwear - it's a dog eat dog financial world)
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To: BJungNan
Canary Wharf

oh, my. that's where the rift to the alternate universe was -- where the cybermen and the time lords' prison capsule containing the millions and millions of daleks crossed the void and the world almost ended, until the doctor closed the rift, only rose got swept to the other side.

this is series.

24 posted on 09/21/2008 3:20:02 PM PDT by dep (Obama's brother in a mud hut? This election is getting hilarious!)
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To: pleikumud
Most all of them are Democrats. This is the way it is, and they know which side butters their bread as do the trial lawyers.

That's why the financial news from CNBC is so, so, anti Bush.

But what can ya do.....Kill the country over it?

I did not think so either.

25 posted on 09/21/2008 3:21:26 PM PDT by Cold Heat (Well....................................That's .....that.........)
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To: farlander

See post 22.


26 posted on 09/21/2008 3:21:43 PM PDT by Mojave
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To: Thebaddog

I guess the shareholders have to suck it up. This really is outrageous — particularly for the employees.


27 posted on 09/21/2008 3:21:58 PM PDT by jersey117
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To: LiveFreeOrDie2001
Well, this is enough to stoke the class envy flames for the next three election cycles.

Leni

28 posted on 09/21/2008 3:23:26 PM PDT by MinuteGal (Obama's Moose is Cooked!)
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To: Cold Heat

It still is rewarding them failure. Performance bonuses should be for performance.


29 posted on 09/21/2008 3:23:41 PM PDT by DemonDeac
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To: LiveFreeOrDie2001
Proof that character has abdicated to greed.

Only a man of character at the helm of this ship of State can lead us out of this conundrum.

30 posted on 09/21/2008 3:24:22 PM PDT by HighlyOpinionated (Barack= Lightening; Hussein= Handsome; Obama= ZigZag, Crooked. Need I say more?)
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To: LiveFreeOrDie2001

The new owners of a bankrupt company should be able to negotiate with employees in a free market fashion.


31 posted on 09/21/2008 3:24:23 PM PDT by gondramB (Preach the Gospel at all times, and when necessary, use words.)
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To: Moonman62
I know people like to have knee jerk reactions around here, but this is a business decision.

In my experience, "business decision", is the knee jerk excuse verbalized by a cockroach decision-maker who thought his actions would never see the light of day

32 posted on 09/21/2008 3:26:07 PM PDT by SiGeek
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To: Chet 99

Barclay’s has gotta’ have a direct line to Abu Dubai Fur Shur.


33 posted on 09/21/2008 3:27:56 PM PDT by muawiyah
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To: DemonDeac
There was performance. Otherwise the bonus pool would be zero. They do it monthly, and Lehman was making good money, until the securities they held became suspect by the shortsellers, and their stock and company was trashed by the markets. In the end, they could not sell it at any price and the Fed had to let them go. There will be more.

If this Fed attempt to regain trust in the markets fail, then all of them will fail, including the ones just sold to banks.

34 posted on 09/21/2008 3:29:25 PM PDT by Cold Heat (Well....................................That's .....that.........)
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To: Cold Heat

That is not being split between 5000 people. The 5000 people mentioned may not have a job after the end of the month per the article.

The bonus is going to about 8 directors and 200 key figures.


35 posted on 09/21/2008 3:31:04 PM PDT by ican'tbelieveit ((Join FreeRepublic's Folding@Home team (Team# 36120), KW:Folding))
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To: LiveFreeOrDie2001

If the taxpayers are bailing out their sorry asses we OWN THAT MONEY.

TIME FOR THE PITCHFORKS AND TORCHES.

God, I am SO mad!!!


36 posted on 09/21/2008 3:32:01 PM PDT by VictoryGal (Never give up, never surrender!)
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To: farlander
There’s no taxpayer money in the Barclay’s purchase of some Lehman operations.”

Not yet. But I'd be willing to bet that before this is all said and done that Barclay's ends up selling a lot of this toxic debt back to Hank Paulson. It sounds as if a lot of these foreign based banks that are holding US mortgage backed debt or derivatives based upon that debt are going to be eligible. Just like Lehman was the original line in the sand about not committing US taxpayer funds and within 96 hours $85 bill to AIG and a promise to buy back basically all distressed mortgage related debt and derivatives held by financial institutions. This thing has already begun to spin out of control and it's not gonna stop.

37 posted on 09/21/2008 3:32:24 PM PDT by bereanway (Sarah get your gun)
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To: Earthdweller
It’s Barclays money to spend. So it’s noneja business.

Take away the $700 billion bailout the US taxpayer is going to eat and what you say might be true ...

But then, if you take that away, what Barclays bought isn't worth a bucket of warm spit.

38 posted on 09/21/2008 3:32:33 PM PDT by tx_eggman (Privatizing profits and socializing losses is no way to run an economy)
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To: LiveFreeOrDie2001

The only question to be asked regardless of the company involved is: Are they receiving any federal (taxpayer) money to help bring them out of their crisis?

If the answer is yes then the payouts should be scrutinized.

If the answer is no then that is the business of the parties involved.

If they pay out and then come hat in hand asking for taxpayer support they should be either told to pound sand or the big winners can give back the money to offset any taxpayer money. If I were a shareholder taking a hit I would certainly object to “incentivizing” corporate morons whose bad management practices ground the company into the dirt.


39 posted on 09/21/2008 3:33:51 PM PDT by RJS1950 (The democrats are the "enemies foreign and domestic" cited in the federal oath)
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To: LiveFreeOrDie2001

I have been watching this for months I still cant determine how this will effect me. Lehman is part of my company officers.

Near as I can tell they only got hosed on realestate deals.

No one knows nothing about the details.


40 posted on 09/21/2008 3:34:54 PM PDT by mylife (The Roar Of the Masses Could be Farts)
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